Bedding group returns to sales growth

UK sales led the way for supply business Simmons Bedding Group as the company grew its turnover for the first time in eight years.

According to its latest filed accounts for the year ended 31 December 2015, Simmons, whose brands include Sleepeezee, reported a sales uptick of 3% to £27.1m from £26.3m in 2014.

Performance within the UK market drove sales and registered a growth of 3.9% to £26.4m, generating over £1m more revenue than its previous year, whilst sales across its European and rest of the world markets suffered a decline, down by 23.3% to and 2.3% respectively.

Gross profit grew 22.5% to £7.6m from £6.2m, whilst pre-tax losses shrunk to £788,249 from its loss of £1.1m in 2014.

In what was a turbulent period for the group, performance picked up during the second half of the year, with the company also securing a new borrowing facility to fund ‘business requirements’.

So far this year, Simmons group has seen a change in ownership with investment firm Perceva acquiring the business from its former French-based owner Cauval after being placed in an insolvency process by the French Court back in February 2016.

After a number of interested parties declared bids, including South African conglomerate Steinhoff International, Perceva won the race after its proposal was more favourable and outlined it would invest €70m, including €40m in equity.

Since the takeover, the UK business now sits under the new parent company umbrella called France Bedding Group, and with the recovery plan now complete, the group maintains a ‘positive’ outlook for future trading.

The Commercial Court in Meaux has ruled today (23 May 2016) that investment group Perceva has won the race to acquire French bedding group Cauval Industries, beating off competition from three other suitors, including Steinhoff.